Boost Run, Inc. — financial distress indicators
Financial-health summary
Boost Run, Inc.'s reported numbers place it in the 'Very weak' financial-health band (distress score 75/100). The main indicators are operating profit does not cover interest, severe working-capital shortfall and material debt with no ebitda. Independently, the Ohlson accounting model puts its 1-year failure probability at 99% and the market-implied (Merton) default probability is 8.6%. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Interest coverage (EBIT / interest) is -5.49×.
When EBIT < interest, debt service is funded from cash reserves or new borrowing — the classic precursor to payment default and covenant breach.
Current ratio is 0.30 (current assets cover 30% of near-term obligations).
Cash-flow insolvency test: inability to pay debts as they fall due is the trigger for both U.S. involuntary petitions and Indian IBC default.
Debt is 78% of assets while EBITDA is not positive.
With no operating earnings, repayment depends entirely on asset sales or fresh capital.
O-score 4.48 → model probability 99%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Merton distance-to-default 1.36 σ → PD 8.6%.
Investment-grade issuers typically have 1-year PD well below 1%.
Short-term debt is 1.7× cash on hand.
Maturity wall: debt due within a year must be refinanced, which is the most common proximate cause of filings.
Price is -69% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- Revenue still growing (+239% YoY).
- High insider/promoter ownership (75%) aligns management with survival.
📰 Recent news scan
- Why Boost Run Stock Popped by Nearly 6% TodayYahoo Finance · 2026-10-07
- Boost Run Soars 11% on $526 Million Sovereign AI Cloud Deal: “An Important Step”Yahoo Finance · 2026-10-06
- Boost Run Shares Rise 9.5% After Signing $525.6 Million AI Cloud Services AgreementYahoo Finance · 2026-10-06
- Boost Run Announces Five-Year, $525.6 Million AI Cloud Services Compute AgreementYahoo Finance · 2026-10-06
- Boost Run (BRUN) Following The AI Infrastructure Buildout Narrative Looks UndervaluedYahoo Finance · 2026-09-20
- Why Wall Street Is Bullish on the AI Service MarketYahoo Finance · 2026-09-18
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Boost Run, Inc.'s financial-health indicators show?
As of 2026-10-08, Boost Run, Inc.'s public financial data places it in the 'Very weak' band with a distress score of 75/100, driven by operating profit does not cover interest, severe working-capital shortfall and material debt with no ebitda. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Boost Run, Inc.'s financial distress score?
75/100 ('Very weak'). Ohlson O-score 4.48 (model 1-year failure probability 99%). Merton distance-to-default 1.36 σ (model default probability 8.6%).
What works in Boost Run, Inc.'s favour?
Operating cash flow is positive over the latest 12 months. Revenue still growing (+239% YoY). High insider/promoter ownership (75%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other IT & Software companies with distress indicators
- Cyabra, Inc. (CYAB)Very weak 100/100
- Exyn Technologies, Inc. (EXYN)Very weak 100/100
- The OLB Group, Inc. (OLB)Very weak 100/100
- Roadzen, Inc. (RDZN)Very weak 100/100
- Rekor Systems, Inc. (REKR)Very weak 100/100
- Veea Inc. (VEEA)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.